Is the future of the music industry leaning towards artist Independence? Reports say, the age of the digital revolution will allow artists to make more money than they could ever make with a major label. This really works in the artist favor since it gives the power back to them and cuts the chord of dependency on the record labels, they have complete creative control over their own music, artistic direction, artwork and promotions, all while keeping the largest share of the profits, not to mention the advances in digital marketing platforms give the artist and managerment the tools necessary to help them promote their music to the masses…
Raprehab breaks it down, “…If you take an artist with a major label deal but with, “low royalty points,” meaning they are a new artist and have signed an agreement entitling them to a low royalty profit on their CD sale (possibly due to not having leverage during the negotiation process) It would take the sale of 3871 units to equal a minimum wage salary. The federal minimum wage in the United States is $7.25 per hour. Let’s Let’s take a look at the info-graphic, which breaks down how many units an artist would have to sell to earn a US monthly minimum wage of $1,160
Now, let’s look at a self-pressed CD. It would take 145 units (the info-graphic says 143, but that is incorrect) to equal the same $1,160 minimum wage salary for the month (145 units x $8 profit = $1,160), A profit ratio of 27:1 in favor of the indie artist?
So a major label artist selling a Gold album which is 500K units would make roughly $149,832 if he/she is on the low end royalty scale, while the independent artist would make $4,000,000. A major label artist with a, “higher royal point,” meaning a contract more suited in his favor would make $499,562 for selling 500K units of his/her CD…”
This is a very good story filled with some insightful information especially for new and independent artist. Click here to read full story from>>> RapRehab.
- How To Succeed In The Music Business, by Tony Guidry (ascratchythroat.wordpress.com)
- Music Clout – What’s The Real Cost of Signing A Major Record Deal? (witchandtoadblog.wordpress.com)
- Artists go after ‘Harlem Shake’ for unlicensed samples (theverge.com)
- Pandora Is Now Charging Indies a Minimum of $1,000 for Promotion… (thisindustrythingofours.wordpress.com)
- The National Average Minimum Wage (businessinsider.com)